See Bull Run's current pages for Bharat Heavy Electricals and Siemens Energy India. Related comparisons include CG Power vs BHEL, GE Vernova T&D vs Siemens Energy India and CG Power vs Siemens Energy India.

April–June 2026 scorecard

BHEL's Q1 is a genuine turnaround quarter

That is more important than the 40% revenue growth alone.

A company can grow revenue without creating shareholder value if margins remain negative.

BHEL's Q1 showed both:

• higher execution;
• and sharply better profitability.

PAT moved from a ₹455 crore loss to ₹382 crore profit

The swing is approximately ₹837 crore year on year.

Revenue increased from ₹5,487 crore to ₹7,698 crore.

Gross operating margin increased from ₹1,698 crore to ₹2,516 crore.

PBT moved from a ₹607 crore loss to ₹513 crore profit.

This is what operating leverage looks like in a project manufacturer

BHEL has:

• large factories;
• engineering teams;
• testing infrastructure;
• project-management overhead;
• fixed employee costs.

When revenue execution is weak, those costs burden margins.

When execution accelerates, the same fixed infrastructure can support much more revenue.

The EBITDA margin is now approximately 9.5%

₹735 crore divided by ₹7,698 crore equals roughly 9.55%.

This is a Bull Run analytical calculation from BHEL's disclosed numbers.

The important point is not whether 9.5% is a peak margin.

It is that BHEL has moved from negative EBITDA to meaningful positive operating profitability.

Siemens Energy is already operating at a much higher profitability level

The company said margin improved approximately 430 basis points year on year.

Drivers included:

• operating leverage;
• higher export contribution;
• disciplined execution.

That margin difference explains the PAT paradox

BHEL revenue:

₹7,698 crore.

Siemens Energy revenue:

₹2,486 crore.

Yet PAT was:

• BHEL: ₹382 crore;
• Siemens Energy: ₹441 crore.

Siemens Energy generated more PAT on less than one-third the revenue

This is the single most important comparison for investors.

BHEL's turnaround is real.

But its margin journey is not complete.

PAT margin makes the gap easy to see

Simple PAT divided by revenue gives approximately:

• BHEL: 5.0%;
• Siemens Energy India: 17.7%.

These are Bull Run analytical calculations.

Siemens Energy currently retains more than three times as much net profit per rupee of revenue.

BHEL compensates with extraordinary order visibility

BHEL's order book is more than thirteen times larger

₹2,60,255 crore divided by ₹19,331 crore is approximately 13.5 times.

This gives BHEL enormous revenue visibility.

It also creates enormous execution responsibility.

A large order book is valuable only if it becomes profitable revenue

Investors should track:

• project milestones;
• customer clearances;
• site readiness;
• material costs;
• collections;
• working capital;
• liquidated damages;
• cost-to-complete revisions.

BHEL's history shows why these details matter.

Q1 collections improved faster than revenue

Customer collections increased 34% to ₹11,004 crore.

That is approximately 1.43 times quarterly revenue.

Strong collections are important because large EPC businesses can report accounting profit while consuming cash.

BHEL needs cash generation alongside margin recovery

Management explicitly identifies:

• focused project completion;
• faster realization;
• margin expansion;
• cash generation;

as FY27 priorities.

The order book is still heavily power-sector driven

BHEL disclosed approximately:

• 81% Power;
• 17% Industry;
• 2% Exports.

This means diversification should not be exaggerated.

BHEL remains heavily dependent on India's power-investment cycle.

Thermal power is still central

Important Q1 wins included:

• 3 × 800 MW Meja STPP EPC;
• 1 × 800 MW DVC Durgapur main-plant package.

These are large utility-scale thermal projects.

Why is India still ordering thermal plants?

Renewables are growing rapidly, but solar and wind are variable.

India still needs dispatchable capacity for:

• evening peak demand;
• seasonal renewable variability;
• grid stability;
• industrial load growth;
• coal-fleet replacement.

This creates a second thermal-equipment cycle for BHEL.

But the new BHEL is not only a thermal story

The company disclosed sizeable outstanding orders in non-thermal categories including approximately:

• ₹12,000 crore nuclear;
• ₹14,000 crore transmission;
• ₹7,000 crore defence;
• ₹15,000 crore transportation;
• ₹8,000 crore coal gasification;
• ₹5,500 crore hydro;
• ₹4,000 crore spares and services.

Transportation is already a meaningful order category

BHEL supplies:

• traction motors;
• propulsion equipment;
• electrics;
• Vande Bharat equipment;
• locomotive systems.

This diversifies factory utilization beyond power plants.

Nuclear could become a much larger long-duration opportunity

BHEL has long-standing capabilities in turbine-generator equipment for India's nuclear programme.

Management highlights the national long-term nuclear-capacity target as a strategic opportunity.

Nuclear projects are slow to award and execute, but once awarded they can create multi-year revenue visibility.

Transmission directly overlaps with Siemens Energy India

BHEL secured Q1 orders for 29 transformers totaling approximately 5,430 MVA.

The company also identifies:

• HVDC;
• green-energy corridors;
• substation equipment;

as strategic growth areas.

Siemens Energy has deeper current economics in transmission

Its April–June Power Transmission segment generated approximately:

• ₹1,386 crore revenue;
• ₹300 crore segment result;
• roughly 21.6% segment margin.

This is already a highly profitable transmission business.

Siemens Energy's second engine is equally important

Power Generation generated approximately:

• ₹1,099 crore revenue;
• ₹245 crore segment result;
• roughly 22.3% segment margin.

This explains why the company converts revenue into PAT so efficiently.

Power Generation includes a profitable installed-base service opportunity

Siemens Energy serves:

• steam turbines;
• gas turbines;
• industrial turbines;
• generators;
• waste-heat-recovery systems;
• modernization;
• service.

Service economics can be less volatile than greenfield EPC.

BHEL also has a huge installed base

Its historical thermal installations create opportunities in:

• spares;
• services;
• renovation;
• modernization;
• efficiency improvements;
• emission-control upgrades.

Yet BHEL's disclosed spares-and-service backlog is still much smaller than its giant project backlog.

The biggest BHEL risk is execution quality

A ₹2.60 lakh crore backlog is only an asset if projects:

• meet schedule;
• stay within cost;
• collect cash;
• avoid penalties;
• preserve margin.

At BHEL's scale, even a small percentage cost overrun can consume hundreds of crores.

The biggest Siemens Energy risk is margin normalization

21.9% operating margin is exceptionally strong.

Investors need to determine how much is:

• structural;
• export-mix driven;
• scarcity driven;
• cycle-driven.

Additional transformer capacity across the industry could eventually reduce scarcity pricing.

Both companies are expanding transformer capability

Siemens Energy has an ongoing approximately ₹740 crore expansion programme.

It has also announced around ₹2,060 crore of future greenfield transformer investment for roughly 30,000 MVA of capacity expected progressively around FY30–FY32.

BHEL already has a broad transmission manufacturing base

The company's challenge is less about entering the market and more about:

• winning high-value orders;
• improving product mix;
• executing at attractive margins.

Green hydrogen is an emerging BHEL option

During 2026 BHEL entered strategic technology tie-ups for:

• alkaline electrolyser systems with thyssenkrupp nucera India;
• PEM electrolyser systems with Hystar AS of Norway.

This gives BHEL access to both major electrolyser architectures.

These agreements are strategic—not yet an earnings base

The tie-ups strengthen technology access and localization capability.

They do not guarantee order flow.

BHEL's international business is also improving

Q1 included the company's largest-ever single export order on a supply-and-supervision basis for gas-turbine-generator packages.

The project covers eight GTG packages for a petroleum refinery and polypropylene plant.

Exports can improve factory utilization

They can also diversify:

• geographic demand;
• customer base;
• currency revenue.

But international projects introduce:

• country risk;
• logistics risk;
• currency volatility;
• contract-enforcement complexity.

BHEL's credit profile is improving

During 2026 multiple rating agencies upgraded BHEL's credit profile.

India Ratings upgraded long-term bank facilities to IND AA with Stable outlook in August.

This is consistent with stronger execution and financial improvement.

The market now values BHEL more highly than Siemens Energy India

BHEL's market cap is roughly 17% larger

Yet BHEL's current trailing P/E is materially lower.

That is possible because the companies have different:

• share-count structures;
• book-value bases;
• earnings histories;
• capital intensities.

BHEL is cheaper on P/E and price-to-book

BHEL:

• ~59.8x P/E;
• ~5.57x P/B.

Siemens Energy India:

• ~83.7x P/E;
• ~25.9x P/B.

But Siemens Energy earns much better current margins

This is why low multiple does not automatically mean better stock.

BHEL investors are buying a margin-recovery thesis.

Siemens Energy investors are paying more for already-visible profitability.

ROCE currently favours Siemens Energy—but only modestly

BHEL's recent cash-conversion field is encouraging

Bull Run's standardized operating-cash-flow-to-net-profit ratio is approximately 3.65x.

This aligns with the quarter's strong customer collections.

However, project cash flows can be volatile from year to year.

Siemens Energy's standardized history remains short

The company listed separately only in June 2025 after demerger from Siemens Limited.

Its historical ROCE and cash-flow series should therefore be interpreted with more caution than BHEL's long listed history.

What must BHEL prove?

• Q1 positive EBITDA must become sustainable rather than episodic.
• Margins should improve as order execution rises.
• ₹2.60 lakh crore backlog must convert without cost overruns.
• Collections need to remain strong.
• Thermal-project execution should improve working capital.
• Non-thermal diversification must become meaningful revenue and profit.
• Green-hydrogen partnerships need commercial orders.
• ROCE needs to rise above its current single-digit level.

What must Siemens Energy India prove?

• 21.9% operating margin needs durability.
• Export contribution should remain healthy.
• ₹19,331 crore backlog must continue replenishing.
• Transformer expansion should reach attractive utilization.
• Power Generation needs to preserve 20%-plus economics.
• Post-demerger ROCE should improve.
• The premium book-value multiple needs continued earnings growth.

What could make BHEL outperform?

BHEL does not need to reach Siemens Energy's margin immediately.

With ₹7,698 crore quarterly revenue, every 100-basis-point improvement in operating margin can create a large absolute profit change.

If revenue keeps scaling while EBITDA margin moves from roughly 9.5% into sustainable double digits, the earnings denominator can expand rapidly.

What could make Siemens Energy outperform?

It already has high margins.

If those margins prove structural while revenue grows 20–30% from backlog and capacity expansion, Siemens Energy can compound earnings without relying on a turnaround.

Which company is larger?

BHEL by revenue and backlog.

Q1 revenue was approximately ₹7,698 crore versus ₹2,486 crore, while backlog was ₹2.60 lakh crore versus ₹19,331 crore.

Which is growing faster?

Effectively a tie on April–June revenue growth.

BHEL grew approximately 40%; Siemens Energy India approximately 39.3%.

Which has better current margins?

Siemens Energy India by a wide margin.

Its profit-from-operations margin was 21.9% versus BHEL's approximately 9.5% EBITDA margin, acknowledging different accounting definitions.

Which generates more quarterly PAT?

Siemens Energy India.

₹441 crore versus BHEL at ₹382 crore.

Which has the larger order book?

BHEL by an enormous margin.

Approximately ₹2,60,255 crore versus ₹19,331 crore.

Which has stronger current ROCE?

Siemens Energy India.

Approximately 9.9% versus BHEL at 6.8%, although Siemens Energy's post-demerger history is shorter.

Which stock is cheaper?

BHEL on current trailing P/E and price-to-book.

BHEL trades around 59.8x earnings versus Siemens Energy India around 83.7x.

Which is better: BHEL or Siemens Energy India?

Siemens Energy India currently has the stronger operating-quality profile. It produces more PAT from less than one-third BHEL's revenue, has 20%-plus operating margins, almost no standardized debt and two profitable energy segments.

BHEL currently has the stronger turnaround and earnings-optionality profile. Revenue is accelerating, EBITDA and PAT have swung sharply positive, customer collections are improving, backlog exceeds ₹2.60 lakh crore and the stock trades at a lower earnings multiple.

The choice is therefore between proven profitability and future convergence.

Siemens Energy already earns high margins.

BHEL owns the much larger revenue and backlog base from which margins can improve.

At September 2026 valuations, Siemens Energy India is the stronger current operating franchise, while BHEL has the larger rerating opportunity if its Q1 turnaround becomes sustainable. BHEL can close the quality gap without matching Siemens Energy's 22% margin; even disciplined movement into durable double-digit EBITDA margins would materially change its earnings power.

Frequently asked questions